Calculation notes

Total value staked (TVS)

Active stake * Token price
  • To the extent possible, value staked is calculated by only adding tokens that are being actively used to secure the protocol and earn rewards. For instance, these are examples where this distinction is important:
    • The Ethereum Beacon Chain (also called the Consensus Layer) has validators which can have balances over 32 ETH. However, the Consensus Layer only recognizes 32 ETH as the maximum stake that a validator can have. Therefore, all balances above 32 ETH will not be counted for value staked.
    • Cardano’s staking mechanism snapshots the staking balances for all accounts at the beginning of epoch n to then be used at epoch n+1. All newly staked ADA at epoch n will be considered to be in the warm up period and will not be counted towards value staked.
    • Binance Beacon Chain has 21 validators who actively form consensus and 8 backup validators who earn rewards. Any BNB staked to validators outside of these 29 validators will not be counted towards value staked.

Reward rates

Reward tokens / Active stake
  • Numerator of reward rates is calculated by adding up staking rewards from newly issued tokens, transaction fees and other miscellaneous rewards that are sent to validators and delegators.
  • Denominator of reward rates uses total circulating tokens that can be used to stake. In many cases, non-circulating locked tokens can still be staked and are take into account in calculations.
  • Validator commissions are not taken into account when calculating reward rates.

Staking ratio

Active stake / Circulating tokens
  • Staking ratio is calculated by using total circulating tokens. In many cases, non-circulating locked tokens can still be staked and are considered to be circulating in ProtocolStaking's calculations.
For protocols where non-circulating tokens can be staked, the total token supply is used as the denominator when calculating the staking ratio.

Inflation

Newly issued tokens / Total tokens
  • Inflation is calculated by dividing total tokens newly issued with total supply of tokens.
  • Not all newly issued tokens are distributed as rewards to stakers. Some protocols direct a portion of the newly issued tokens for other uses, such as the protocol treasury.
  • Some protocols will issue all tokens from genesis and set aside a portion to be used for staking rewards. While technically no new tokens are being issued in such cases, the portion of staking rewards being set aside would not enter the circulating token supply if they are not distributed to stakers. ProtocolStaking interprets the staking rewards being distributed to stakers as inflationary regardless of whether the tokens were pre-issued or newly issued.
For protocols where tokens to be distributed as staking rewards are pre-issued, the circulating token supply is used as the denominator when calculating the inflation rate.